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24-R-51 EDC Performance Agreement- Mile Hi San Antonio, LLCRESOLUTION NO.24-R-51 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ TEXAS AUTHORIZING AN EXPENDITURE AS REFELCETED IN AN ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION AND MILE HI SAN ANTONIO LLC AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz Economic Development Corporation ("SEDC") is a non- profit industrial development corporation duly established under the Development Corporation Act of 1979, as amended (Section 501.001 et seq. Texas Local Government Code, formerly the Development Corporation Act of 1979) (the "Act"); WHEREAS, all of the powers of the corporation are vested in the SEDC Board of Directors (the "Board") appointed by the governing body of the corporation's authorizing unit; and WHEREAS, the Act authorizes a development corporation to fund certain projects as defined by the Act and request development corporations enter into incentive agreements to establish and provide for the direct incentive or make an expenditure on behalf of a business enterprise under a project; and WHEREAS, over the term of the agreement, Company intends to create and maintain 150 full time employees with a minimum annual payroll of $10,800,000; and WHEREAS, over the term of the agreement, Company and/or third -party developer intends to invest $50,000,000 in tangible real and person property at the facility; and WHEREAS, Corporation intends to provide an Operational Grant in two payments, one in the amount of $500,000 at the time Company receives it Certificate of Occupancy and provides proof of investment of $40,000,000 and another $500,000 at the time Company hires 150 employees at their Schertz location; and WHEREAS, Corporation intends to provide a Property Tax Rebate on Real and Personal taxes of the increment amount paid by the company of 100% for calendar year 2026, 2027, 2028, a 90% new incremental rate based for calendar years 2029, 2030, 2031, and a 50% new incremental rebate for calendar years 2032, 2033, 2034, and 2035 based upon the taxes paid by Company for the real and tangible person property on -site at Company's Schertz operation. WHEREAS, The SEDC held a public hearing at its April 25, 2024 meeting and the Board approved SEDC Resolution 2024-5 authorizing an Economic Performance Agreement between the City of Schertz Economic Development Corporation and Mile Hi San Antonio LLC subject to the City Council's authorization.; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City of Schertz City Council hereby authorizes the expenditure reflected in the Economic Development Performance Agreement attached hereto as ATTACHMENT A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the Board. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the board hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this _1 day of 11A Z , 2024. ATTEST: # y4t4l� Shei9, Edmondson, C ty Secretary CITY OF SCHERTZ Ra# Gu ' rrez, Mayor